This experts' meeting brings together local financial institutions, academics, policy-makers and representatives from international financial institutions. The objectives of this seminar are twofold:

to understand why the cost of capital stands relatively high in Southern Africa (with a large focus on the cost of debt in South Africa), and discuss which policies and strategies might help reduce it.

to assess the current state of, and future prospects for financial regional integration and development.

This initiative is part of the Centre's Programme of Work 2003-2004 , in the context of its broader mandate to facilitateinformal policy dialogue between the OECD and non-member countries. It is part of a OECD project entitled “Understanding Debt Costs inSouth Africa: What Policies Could Narrow the Spread?”,financed by the Swiss Agency for Development and Co-operation.

Structure of the meeting

Day one - 25 March 2004

Session 1: will provide an overview of country risk inSouth Africa

Session 2: will examine the determinants of currency and default risk inSouth Africa, with a focus on the impact of monetary and exchange policies